Jobless Majority? Two More Provinces Close to Crisis as Unemployment Soars

South Africa’s unemployment crisis is worsening, and two more provinces are on the verge of an alarming milestone — having more unemployed people than those with jobs.

According to Stats SA’s latest Quarterly Labour Force Survey (QLFS) for Q1 2025, Mpumalanga (49.3%) and the Eastern Cape (49.0%) are dangerously close to joining the North West province, where 56% of the working-age population is unemployed or has stopped looking for work.

This means that in these regions, more than half of adults either cannot find work or have given up trying — a stark indicator of economic stagnation and social distress.

A Grim National Picture

The national statistics paint a similarly bleak picture. South Africa’s official unemployment rate rose to 32.9% in the first quarter of 2025, marking a full percentage point increase from Q4 2024. This jump far exceeds economists’ expectations of a modest 0.2% rise.

First quarters often reflect seasonal employment dips following festive hiring booms. However, this year’s figures are compounded by thousands of new matriculants and graduates entering a tight job market, making the unemployment strain even more severe.

In just one quarter:

• 291,000 jobs were lost, dropping total employment to 16.8 million

• 237,000 more people became unemployed, raising the number to 8.2 million

• The overall labour force shrank by 54,000, indicating many are leaving the job hunt entirely

Discouraged job seekers — those who want work but have given up hope — increased slightly by 7,000. Meanwhile, the number of people not economically active due to other reasons surged by 177,000, bringing the total non-working population to 16.7 million.

Are There Any Bright Spots?

Despite the gloomy outlook, some sectors did record job gains:

• Transport added 67,000 jobs

• Finance grew by 60,000 jobs

• Utilities added 35,000 jobs

Interestingly, while the formal sector grew by 122,000 jobs, the informal sector outpaced it, growing by 165,000 jobs — driven by:

• Community and Social Services (+194,000)

• Construction (+176,000)

• Trade (+109,000)

However, these gains were offset by major losses in:

• Trade (-194,000)

• Construction (-119,000)

• Private Households (-68,000)

• Community and Social Services (-45,000)

• Mining (-35,000)

What This Means

South Africa is now dangerously close to having multiple provinces where the majority of adults are unemployed, signalling a need for urgent policy intervention.

Without focused action to stimulate job creation, upskill the youth, and support small enterprises — particularly in rural provinces — the gap between employment and hopelessness will only widen.

{Source: BusinessTech }

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